NEW YORK ( TheStreet) -- In my opinion, Federal Reserve policy failed as soon as the FOMC cut the federal funds rate below 3% on March 18, 2008, to 2.25%. It was Dec. 16, 2008, when the Fed cut this rate to 0%, where it could remain for years to come if Janet Yellen becomes the next Fed chairman in early 2014.The Fed's quantitative easing programs began in late November 2008 when the Federal Reserve Open Market Trading Desk in New York began to purchase $600 billion in mortgage-backed securities. Two years later the Fed announced another round of purchases and this time it was $600 billion in longer-dated U.S. Treasuries by the end of second quarter of 2011. This second wave was dubbed QE2.
How Capital Markets Will React to FOMC News
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.